Fauji Foundation acquires 19.7% stake in Pearl Continental worth PKR 6.55 billion
The purchase follows disputed share transactions and restructuring negotiations involving Pakistan Services Limited, the owner of Pearl-Continental Hotels
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
Fauji Foundation has acquired a 19.70% voting stake in Pakistan Services Limited, the owner and operator of Pearl-Continental Hotels, for approximately PKR 6.55 billion, marking the latest development in the company's prolonged ownership dispute.
According to a disclosure filed with the Pakistan Stock Exchange (PSX) on Tuesday, Fauji Foundation purchased 6,406,797 shares of Pakistan Services on November 2 at PKR 1,022.42 per share.
The acquisition represents Fauji Foundation's entire holding in the company. Pakistan Services said it received a letter dated November 2 from the foundation under Section 110 of the Securities Act, 2015, and Regulation 4(2) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.
How does the acquisition compare with earlier share purchases?
In July 2025, AKD Group Holdings and its subsidiary AKD Securities acquired 9,089,651 shares, or 27.95% of Pakistan Services, at PKR 700 each. Thatta Cement acquired 9,107,800 shares, or 28%, in October 2025 at PKR 710 each. Fauji Foundation's purchase price of PKR 1,022.42 per share is about 44% higher than Thatta Cement's.
The transactions became embroiled in an ownership dispute involving the Hashwani Group, which acquired a majority stake in Pakistan Services in 1985. The disputed share transfers and subsequent attempts to change the company's board led to proceedings before the Islamabad High Court.
What is the status of the ownership dispute?
In September 2026, Nukta reported that a possible out-of-court settlement could involve dividing five Pearl-Continental hotels between Thatta Cement and Fauji Foundation. Pakistan Services said on September 7 that it had no knowledge of the reported arrangement and had received no information about it from shareholders.
However, Thatta Cement disclosed on September 10 that it had reached an in-principle understanding regarding a proposed restructuring of Pakistan Services, subject to final agreements.
On September 14, Pakistan Services confirmed that negotiations were underway on a proposed restructuring aimed at resolving the dispute before the Islamabad High Court. The company said the arrangement would be finalized through definitive agreements and communicated to the PSX and relevant authorities.
The November 3 acquisition disclosure does not identify the seller of Fauji Foundation's shares or establish whether the transaction forms part of the proposed restructuring.
Pakistan Services owns and operates the Pearl-Continental hotel chain and licenses its brand to other hotel operators.
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